The Prime Minister has announced a new initiative designed to streamline the UK’s skills framework.
- A new growth and skills levy will replace the existing apprenticeship levy, aiming to provide businesses with more funding flexibility.
- Skills England, a newly established body, will oversee the implementation of this significant reform.
- This development addresses long-standing employer demands to allow levy funds to be used more effectively for necessary skills training.
- The reform aims to stimulate economic growth and create more opportunities for young people.
In a strategic move aimed at revamping the nation’s skills landscape, Prime Minister Keir Starmer announced the introduction of a new growth and skills levy. The announcement was made during a speech at the Farnborough International Airshow in Hampshire, signalling the government’s commitment to addressing substantial gaps in the existing skills framework.
The newly introduced levy will replace the current apprenticeship levy and will be managed by Skills England, a body set to supersede the Institute for Apprenticeships and Technical Education. Skills England will be responsible for determining the eligibility of training programs for levy funds, thereby providing businesses with increased freedom to allocate funds according to their specific skills requirements.
The government has described this reform as an essential step towards providing enterprises with the adaptability they have long requested, enabling them to utilise levy funding more effectively in addressing their skill shortages. This flexibility is anticipated to empower companies to adapt swiftly to the evolving market demands.
Richard Pennycook CBE, known for his leadership as the former chief executive of the Co-op group, will chair Skills England on an interim basis, ensuring a smooth transition and effective implementation of the new measures. The phased rollout of this initiative is expected to take place over the next nine to twelve months.
Prime Minister Starmer emphasised the need for this transformation, stating, “Our skills system is in a mess, which is why we are transforming our approach to meet skills needs over the coming decades.” He further noted that these measures aim to kickstart economic growth by opening up new avenues for young people and supporting British businesses in sourcing local talent.
The announced reform represents a pivotal shift in the UK’s approach to skills training, focusing on flexibility and economic growth.
